On October 24, an open-source project launched a platform where transfers between Bitcoin and Ethereum blockchains are possible. However, the said transfer uses its own cryptocurrency to make transactions possible.
Developed by iBitcome and DEx.top, the Open Federated Gateway Protocol (OFGP) platform is free to use for the public, and it aims to connect several blockchain networks. The project plans to create its own cryptocurrency called WBCH so as to connect different digital coins. The idea is not new, and other projects have also been trying to synergize several crypto systems into one.
How Will It Function?
The Open Federated Gateway Protocol (OFGP) aims to connect Bitcoin and Ethereum into a single system. Two blockchain entities, iBitcome and DEx.top, have developed an algorithm known as Mallow. The said protocol federates the new blockchain and provides services regarding ledger records. OFGP would function through a new cryptocurrency called WBCH. It would transfer value between cryptos such as Bitcoin Cash, Bitcoin, and Ethereum. The crypto pegs its value to Bitcoin Cash.
The idea is to keep crypto transfers instant and with low fees. However, OFGP acts as a new blockchain network. It does not combine the existent systems, Bitcoin and Ethereum, into a single network. Still, since it is open-source, developers have access to the code. Thus, they have access to potentially new networks as well.
Connecting Bitcoin and Ethereum
Apart from OFGP, recently, MasterCard filed and won a patent concerning the partitioned blockchain system. The idea behind the project is to combine several cryptos, Bitcoin, and Ethereum, under one roof. Under the patent, a single blockchain system would hold several cryptos. However, its transaction and ledger records would suffer in terms of complexity of the data, especially when combining features of Bitcoin and Ethereum.
On the other hand, there are many new tokens/coins that wish to hold features of Bitcoin and Ethereum systems. These do not combine existent blockchains. Instead, they take the best functions and create their own ecosystem with a unique cryptocurrency.